Japanese yen to a 15-year high versus the U.S. dollar Tuesday as investors once again sought out safe havens.
The dollar extended a loss versus the Japanese currency as New York trading got under way, breaking through the previous low at 83.57 yen set on Aug. 24. The dollar hit a new 15-year low of ¥83.49 and recently traded at ¥83.66, a decline of 0.5% from Monday.
The dollar rose against most other rivals.
Both the yen and the greenback benefited from safe-haven flows triggered in part by a report in The Wall Street Journal, which said that stress tests conducted on European banks earlier this summer understated some lenders' holdings of potentially risky government debt. Read about flaws in the stress tests.
"Coming back from the Labor Day holiday, U.S. investors have been caught a bit off guard by the reversal of sentiment toward Europe," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman, in a note. "The euro had rallied in the immediate aftermath of [Friday's] stronger-than-expected U.S. jobs data ostensibly on a greater appetite for risk. There was some follow-through early yesterday and then only lower."
The euro /quotes/comstock/21o!x:seurusd (EURUSD 1.2728, -0.0143, -1.1109%) fell 0.8% versus the dollar to change hands at $1.2735 after pushing to a high of around $1.2918 on Monday. The European single currency was 1.3% lower versus the Japanese yen /quotes/comstock/21o!x:seurjpy (EURYEN 106.6100, -1.7300, -1.5968%) at ¥106.56.
http://www.marketwatch.com/investing/currency/USDYEN
